OfflineProperty tax question.
I found a property that the owner will carry $229k
an I need to get a mortgage for $200k. my question is do I pay property tax on the $429 or the $200k?
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"God gives us gifts, warped up in problems"
tax question
Posted on: Tue, 07/22/2008 - 21:12
tax question
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- by Vivanco
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You will be part owners with the seller, therefore you'll need to work that out in an agreement between you and the seller to either go 50/50 or negotiate the terms regarding the taxes.
"The hands of the DILIGENT MAKETH RICH!" (Proverbs 10:4)
It would really be up to you and the owner as to how you're negotiating this deal. My guess would be if the owner's carrying the 1st mortgage and you're getting a second he's probably going to stay on the deed so the taxes would be in his name unless he states otherwise in your agreement. Someone correct me if I'm wrong on this. This is an interesting scenario, one I've never been in so let us know how it all works out.
Continued blessings,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Hi Vivanco, If you are receiving title to the property by warranty deed then you'll be the owner and entirely responsible for the taxes. The seller is providing owner financing just like any other lender/mortgage holder. Some lenders prefer to have you escrow tax payments, that is pay taxes each month with the loan payment so that at the end of the tax billing period the money to pay the property taxes are there.
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